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CQH, CTL and macro notes +4

09:59 04-May-18


Cheniere Energy Partners has reported earnings for its first quarter:

As a reminder, I won't always report on CQP earnings, but what's really important here is that the projection for FY 2018 distributions has been raised to $2.20-2.30, from $2.00-2.20.  That's about 58 cents on a quarterly basis, and it brings the yield on CQH back to the 8% level it was at when I added it to the pick list.  Of course, shares have appreciated since then, and I expect them to do so again.

In the meantime, this morning's jobs report has sent the market tumbling.  Wages rose, but only trivially, and the Participation Rate and Unemployment/Population ratio were pretty much unchanged.  So I don't think anything in the report should change the choppy market dynamic we've been seeing.  In fact, a somewhat weakened Euro indicates the opposite, but that's probably due more to Italy's stalemate and Brexit, than truly long-term economics.  Trade issues should come to the fore again soon enough, as they are certainly more fundamentally important in the short-term.  We'll see what various Fed presidents have to say when they speak at the beginning and end of next week.  For stocks I cover, the stronger dollar should help the dividend payers like CQH and CTL.  For the latter, CenturyLink looks to be taking the right steps to optimize its combined business by reducing headcount some 2%.  There's been a lot to write about lately, but hopefully that wraps things up until the earnings reports next week.